A Post-Mortem on Tax Fraud: Identity Fraud Cases Quadruple in Two Years

The incidence of tax-related identity fraud is staggering. Fewer than 52,000 cases were noted in 2008, yet the IRS found 245,000 cases of identity fraud in 2010. Most victims have no idea their Social Security numbers have been used fraudulently, according to this article on Reuters. The increase is likely due to better security mechanisms built into the IRS’s computers systems, because when a crook “steals someone’s Social Security number to get a job, it appears as though the victim has unreported income. That actually triggers a notice sent to the victim telling them they failed to report all their income.”